U.S. Department of Commerce Issues Preliminary Duties on Oleoresin Paprika from India
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On February 6, 2026, the U.S. Department of Commerce announced a preliminary affirmative finding in the countervailing duty (CVD) investigation concerning oleoresin paprika from India.
The Department found that producers and exporters in India received financial subsidies from the government. These subsidies could harm U.S. producers of oleoresin paprika.
The period of investigation spans from April 1, 2024, through March 31, 2025.
Commerce launched the investigation on July 22, 2025. The preliminary decision was delayed due to a federal government shutdown in late 2025. As a result, the new deadline for this finding was changed to January 29, 2026.
Two companies were individually reviewed: Mane Kancor Ingredients Private Limited and Synthite Industries Pvt. Ltd.
Preliminary Subsidy Rates:
- Mane Kancor Ingredients Private Limited: 18.56%
- Synthite Industries Pvt. Ltd.: 25.41%
- All Other Exporters: 22.95%
These rates reflect the financial help these companies received through programs the Commerce Department found to be specific and measurable.
Commerce also made a preliminary decision on critical circumstances. The department determined that Synthite received irregular benefits and began exporting large volumes before duties were in place. As a result, duties may apply to Synthite’s shipments retroactively by 90 days before this announcement. This does not apply to Mane Kancor or other exporters.
Scope of the Product:
The investigation covers oleoresin paprika extracted from Capsicum peppers. It includes all forms of the extract that meet the American Spice Trade Association (ASTA) value of at least 500 or a color unit value of at least 20,000.
The product may be known as paprika extract, paprika oil, or paprika essential oil. It may be blended with oil or water or include emulsifiers or preservatives. It is classified under these Harmonized Tariff Schedule codes: 3203.00.8000, 3301.90.1010, 1301.90.9190, 1302.19.9140, and 3205.00.0500.
Suspension of Liquidation:
Effective with this ruling, U.S. Customs and Border Protection (CBP) will suspend liquidation of imports of oleoresin paprika from India. This applies to goods entered, or withdrawn from warehouse, for consumption on or after the date of publication.
Importers must now pay cash deposits according to the preliminary subsidy rates. CBP will apply the company-specific rate, or in cases involving both producer and exporter, the higher of their rates.
Public Comments and Final Determination:
Commerce will allow interested parties to submit written comments after verification reports are issued. Comments must include a summary of each issue, limited to 450 words.
A hearing may be requested within 30 days of publication of this notice.
Final Determination:
Commerce will align the final CVD decision with the final result of the related antidumping investigation. That final decision is set for June 15, 2026, unless extended. If Commerce confirms the findings, the U.S. International Trade Commission (ITC) will determine if the U.S. industry was harmed.
Legal References:
This action was taken under sections 703(d), 705(c)(5)(A), and 703(e)(2) of the Tariff Act of 1930, as amended.
For more details, the Preliminary Decision Memorandum and scope description are available through the Enforcement and Compliance Centralized Electronic Service System (ACCESS) at https://access.trade.gov.
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